IRS 8824 2021 free printable template

B c You can establish to the satisfaction of the IRS that neither the exchange nor the disposition had tax avoidance as one of its principal purposes. If this box is checked attach an explanation. See instructions. For Paperwork Reduction Act Notice see the instructions. Cat. No. 12311A Form 8824 2018 Page 2 Your social security number Realized Gain or Loss Recognized Gain and Basis of Like-Kind Property Received Caution If you transferred and received a more than one group of like-kind...

How to fill out form 8824 2021

How to fill out form 8824:

1. Gather all necessary information and documentation, such as the property sale and acquisition dates, purchase price, and any associated expenses.
2. Complete Part I of the form, providing details about the property being sold or exchanged. Include the date and description of the property, as well as the sale price or fair market value.
3. Move on to Part II, where you will disclose the property or properties received in the exchange. Include the description and date of acquisition, as well as the fair market value.
4. Calculate the gain or loss on the exchange in Part III. Subtract the adjusted basis of the property sold from the fair market value to determine the gain or loss.
5. If the exchange involves multiple properties, use Part IV to provide a detailed breakdown of each property.
6. Proceed to Part V if any boot or cash was received during the exchange. Provide the necessary information regarding the boot received and its fair market value.
7. If applicable, complete the remaining parts of the form, such as Part VI for information on indirect exchanges or Part VII for partnership exchanges.
8. Double-check all entries and calculations to ensure accuracy.
9. Sign and date the form before submitting it to the appropriate tax authority.

Who needs form 8824:

1. Individuals or businesses who engaged in a like-kind exchange of properties for tax purposes need to fill out form 8824.
2. Taxpayers who had gains or losses from the exchange must report these transactions on the form.
3. It is important to note that the form is necessary for both the person who transferred the property and the person who received the property in the exchange.

Video instructions and help with filling out and completing form 8824

Instructions and Help about form 8824 example

Frequently asked questions IRS Form 88 24 like-kind exchanges any time a taxpayer performs an exchange they or their tax advisor are going to need to complete form 88 24 what's referred to as the light kind exchanges form, and I've got a screenshot of it here on the screen on this form the taxpayer is going to need to provide certain information to the IRS a description of the like-kind property given up a description of the like-kind property received the date the like-kind property given up was originally acquired and then next the date the taxpayer actually transferred this property to a buyer so between those two segments keep in mind they're really looking for the potential holding period that's what you're giving to the IRS the next the date the like-kind property received was identified by written notice to another party next the date the taxpayer actually received the like-kind property from the other party and then finally they asked a question was the exchange of property involving a related party and in the situation where the answer yes it did involve a related party part — a form 88 24 asks for more information regarding the related party who are they their address they're identifying tax number their relationship to the taxpayer so if you're involved with an exchange with the related party you're going to actually have to disclose this information to the IRS via this form to review your specific 1031 exchange situation contact asset preservation headquarters in California at 800 — a — 1031 or our Eastern Regional Office in New York at 866 3 9 4 1031 please read the full disclaimer as asset preservation cannot provide tax or legal advice

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What is form 8824?

Form 8824 is a tax form used by individuals, partnerships, or corporations to report like-kind exchanges of real property under section 1031 of the Internal Revenue Code. A like-kind exchange allows the taxpayer to defer the recognition of gain or loss from the exchange of property that is held for productive use in a trade or business or for investment purposes. Form 8824 is used to calculate the gain or loss on the exchange and to report it to the Internal Revenue Service (IRS).

Who is required to file form 8824?

Form 8824, also known as Like-Kind Exchanges, is required to be filed by individuals, partnerships, corporations, and other entities who have completed a like-kind exchange of business or investment property and want to report the exchange to the Internal Revenue Service (IRS).

How to fill out form 8824?

Form 8824 is used to report like-kind exchanges of real estate or property held for productive use in a trade or business or for investment purposes. Here's a step-by-step guide on how to fill out form 8824: 1. Gather the necessary information: Collect all the relevant details about the like-kind exchange transaction, including the description of the property you exchanged, its fair market value, and any cash or other property received or paid in addition to the like-kind property. 2. Provide your identification information: In Part I of the form, enter your name, Social Security number or Employer Identification Number (EIN), and the year of the exchange. If you are filing a joint return, include your spouse's name and SSN/EIN as well. 3. Report the exchanged properties: In Part II, list all properties involved in the exchange, including both the relinquished property (the property you gave up) and the replacement property (the property you received). Fill in the description, date of transfer, and the property's fair market value at the time of the exchange. 4. Calculate the gain or loss on the exchange: Subtract the adjusted basis (usually the purchase price plus improvements) of the relinquished property from its fair market value to determine the amount of gain or loss. Repeat this calculation for the replacement property as well. 5. Identify any boot received or paid: If you received or paid cash or other non-like-kind property in the exchange, report it in Part III of the form. Calculate the fair market value of the boot received or paid and indicate the net boot amount. 6. Determine whether the exchange is partially taxable: Review the calculation in Part IV to determine if any portion of the gain on the exchange is taxable. 7. Complete the final calculations: In Part V, compute the recognized gain or loss from the exchange, taking into account any taxable or non-taxable amounts. Carry forward these numbers to your tax return. 8. Sign and submit the form: After completing the necessary calculations and verifying the information, sign and date the form before attaching it to your tax return. Note: The instructions on the actual form 8824 provide additional guidance, so make sure to refer to them while completing the form. It's always advisable to consult a tax professional for personalized advice regarding your specific situation.

What is the purpose of form 8824?

Form 8824, also known as Like-Kind Exchanges, is used to report and calculate any gains or losses from the exchange of property held for productive use in a trade or business or for investment purposes. This form is primarily used to report like-kind exchanges under Section 1031 of the Internal Revenue Code. The purpose of Form 8824 is to provide the necessary information to the Internal Revenue Service (IRS) about the exchange of property and to determine the tax treatment of any gains or losses realized from such exchanges. By completing this form, taxpayers can defer recognizing any taxable gains from the exchange if they meet the requirements for a like-kind exchange. Additionally, the form is used to report any boot received or paid during the exchange. Boot refers to any additional consideration received or given in the exchange, such as cash, personal property, or non-like-kind property. The form helps to calculate the taxable portion of boot as well. Overall, Form 8824 facilitates the accurate reporting and calculation of gains, losses, and potential tax liabilities arising from like-kind exchanges, helping taxpayers comply with the IRS guidelines and regulations.

What information must be reported on form 8824?

Form 8824, also known as Like-Kind Exchanges, is used to report the exchange of real property or certain types of personal property. The following information must be reported on this form: 1. Identification information: The taxpayer's name, Social Security Number (SSN), or Employer Identification Number (EIN), as well as the date of the exchange. 2. Description of the relinquished property: Details about the property that the taxpayer is giving up in the exchange, including the type of property, its value, and any debt or liabilities associated with it. 3. Description of the replacement property: Information about the property that the taxpayer is acquiring in the exchange, including its type, value, and any debt or liabilities associated with it. 4. Calculation of realized gain or loss: The amount of gain or loss realized on the exchange, which is generally the difference between the fair market value of the relinquished property and the cash and fair market value of any additional property or services received. 5. Calculation of recognized gain or loss: The portion of the realized gain or loss that the taxpayer elects to recognize for tax purposes. This is generally determined by comparing the amount of cash and the fair market value of any other property or services received in the exchange. 6. Deferred gain: The amount of realized gain that is not recognized in the current tax year and is deferred to future tax years. This is usually the difference between the realized gain and the recognized gain. 7. Basis of replacement property: The taxpayer's adjusted basis in the replacement property, which is typically the basis of the relinquished property plus any additional cash paid or the fair market value of any other property or services exchanged. 8. Identification of qualified intermediary: If a qualified intermediary was used to facilitate the exchange, their name, address, and identification number must be provided. It is important to note that this is just a summary of the information required on Form 8824, and additional details and instructions may apply depending on the specific circumstances of the exchange. Taxpayers should consult the official IRS instructions for Form 8824 or consider seeking professional tax advice to ensure accurate reporting.

When is the deadline to file form 8824 in 2023?

The deadline to file form 8824 is typically the same as the regular income tax filing deadline, which is April 15th of each year. However, if April 15th falls on a weekend or a holiday, the deadline is usually extended to the next business day. Therefore, for the tax year 2023, the deadline to file form 8824 would likely be April 17th, 2023. It's always advisable to consult the official IRS website or a tax professional for the most accurate and up-to-date information.

What is the penalty for the late filing of form 8824?

The penalty for the late filing of form 8824 depends on whether the taxpayer owes additional tax or not. If a taxpayer owes additional tax as a result of their late filing, they may be subject to a penalty of 5% per month (or fraction thereof) on the amount of tax due, up to a maximum of 25% of the unpaid tax. On the other hand, if the taxpayer does not owe any additional tax, there is generally no penalty for late filing. However, it's important to note that the IRS recommends filing tax returns on time even if no payment or refund is due, in order to avoid any potential penalties or interest in the future.

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